ECB President Christine Lagarde told finance ministers and central bankers at the IMF meetings in Bangkok that sound public finances are a 'crucial anchor' for economic stability. She said fiscal responses to the energy shock should be temporary, targeted and tailored, and that high-debt countries should consolidate and rebuild buffers. Lagarde reiterated the ECB's view that risks to the economic outlook are on the downside while inflation risks point upward. The ECB raised rates twice, in June and September, and is widely expected to hike again at the end of the year. More than 30 central banks have expressed interest in the Eurosystem's enhanced repo facility.
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